Suryalakshmi Cotton Mills ‘s Q2 Update: Profit Falls by 173.61% Year-on-Year

The comprehensive analytics outlining the performance and outlook of Suryalakshmi Cotton Mills Limited‘s stock. This analysis encompasses various metrics including stock performance, investor sentiment, market trends, future outlook, risk factors, investment opportunities, long-term strategy, dividend policy, analyst insights, and the overall risk-reward profile. These insights aim to provide investors with a holistic understanding of the company”s stock, enabling informed decision-making and strategic investment planning.

Today, we’re looking at Suryalakshmi Cotton Mills Limited’s financial performance for the Q2(Sep 2024-25).Starting with the top line, the company reported a robust year-over-year sales growth of 4.69 %. However, it did see a marginal increase of 21.72 % from the previous quarter. Expenses ticked up slightly by 23.32 % quarter-on-quarter, aligning with the annual rise of 4.94 %. Operating profit, while up 1.21 % compared to last year, faced a quarter-on-quarter increase of 2.62 %, signaling a short-term expansion in margins.
The Operating Profit Margin (OPM) % contradicts this narrative, showing weakness on an annual basis with a decrease of -0.22 %, but a shrinkage of -1.2 % sequentially. Other income fell by -100.53 % compared to the last quarter, despite an annual growth of 61.9 %. Interest expenses surged remarkably by 7.97 % from the previous quarter, yet the year-over-year increase remains at a moderate 25.83 %. Depreciation costs fell by -10.74 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 2.47 %. Profit before tax declined annually by -171.29 % but saw a reduction from the preceding quarter by -228.57 %.
Tax expenses as a percentage of profits decreased slightly by -55.34 % compared to last year, with a more notable quarter-on-quarter decrease of -51.04 %. Net profit fell by -173.61 % year-on-year but witnessed a -223.26 % contraction from the last quarter. In summary, Suryalakshmi Cotton Mills Limited’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.

In reviewing Suryalakshmi Cotton Mills Limited’s 2024-25(Q2) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales saw a robust 4.69 % year-on-year growth, however, there was a minor increase of 21.72 % from the previous quarter. Expenses rose by 4.94 % compared to the previous year, with a 23.32 % increase quarter-on-quarter. Operating Profit surged by 1.21 % annually, and saw a 2.62 % increase from the last quarter.
Net Profit showed yearly decrease of -173.61 %, and experienced a -223.26 % decrease from the previous quarter. In essence, while Suryalakshmi Cotton Mills Limited faces strong annual decline indicators, short-term fluctuations suggest the need for agile strategies to navigate market dynamics effectively. That’s all for now in the financial sector.